Difficult reality of South Hadley budget causes officials to consider new approaches

SOUTH HADLEY – A deep sigh could be heard after Town Accountant William Sutter finished his presentation on the town’s 2012 budget to the Selectboard on Tuesday.

It was a sigh that reverberated throughout the Pioneer Valley, as towns face the prospect of rising costs, greater need and less help from the state.

For example, because state aid has declined, South Hadley is having to depend more than ever on its reserves and on property taxes, said Sutter.

In 2003, the town drew 53 percent of its operating revenues from taxes, he said. In 2011 it was 61 percent, and in 2012, he estimates it will rise to 62 percent.

Budget requests from the public schools have remained level for the past couple of years, but Sutter said that was due to stimulus funding from the government. Now those government programs have run out.

The schools consume by far the largest chunk of a town’s operating budget, but they are making sacrifices, too.

At a School Committee meeting, South Hadley High School principal Daniel Smith said he had hoped to add a late bus for struggling students who need extra help with homework after school. The committee brought up options, but it all sounded like goodbye to that idea.

In South Hadley, the schools account for $18,793,008 in 2011, out of a town budget of $25,964,121.

Every department in town is sacrificing. James Reidy, director of the South Hadley DPW, said he had to make do with fewer snow plowers in this difficult winter. When two men retired, there were no funds to replace them.

Sutter said the town has no control over some of the costs that go up, such as insurance and retirement funds.

What hasn’t even been figured in, he said, are the 2011 costs that are sure to come this spring, when the ravages of this particular winter come to light.

Wage and salary increases that have not yet been negotiated may further stress the 2012 budget.

Town Administrator Paul Beecher said the town is at a pivotal point, when new approaches must be taken. “This is a good time to look at the future,” he said. “We have to change our priorities.”

“We have to look very closely at the way we do business,” agreed John Hine, chairman of the Selectboard. Board member Bruce McCulloch asks the public to weigh in on “where they would be willing to see cuts.”

The Selectboard agreed that regionalization, or collaborating with other towns on areas like public health, will be among the avenues that should be pursued, but cautioned that such solutions will take time.